Suezmax Rates Set To Soar

Friday, December 10, 1999
Surging Suezmax tanker rates are set to soar if Iraqi exports come back on stream next week, shipping brokers said on Wednesday. Rates for the one million barrel tankers have lifted to around 100 Worldscale points on fixtures from West Africa and the North Sea to the U.S., and on cross Mediterranean and North Sea routes, brokers said. "Suezmax rates are going to sky rocket if Iraqi exports come back next week," one broker said. U.S. and British envoys to the U.N. said that the Security Council would vote on a straight-forward six month renewal of the humanitarian Iraq "oil-for-food" program last Friday. Iraq has previously said it would accept a renewal of the scheme on previous terms after rejecting two week and one week extensions. With agreement, exports could be expected to start within a few days from the Mediterranean port of Ceyhan, on past experience. "I expect to see a glut of orders on Monday (Dec. 13) with cargoes starting to appear quite quickly," another broker said. "In this overheated Suezmax market, the Mediterranean Could go crazy," he said. Cross Mediterranean rates which had strengthened this week despite the absence of Iraqi cargoes pushed up to W95-100 ($3.30 -3.40) from around W90 ($3.10), brokers said. Recent upward pressure had been the result of a shortage of modern prompt vessels both in the Med and off West Africa. West Africa-U.S. Suezmax rates hit year highs of around W105 ($9.20 per ton) last Tuesday, having climbed from around W72.5 ($6.35) a week before as export restrictions in Nigeria lifted and U.S. charterers sought sufficient modern ships. North Sea to USAC rates were seen hitting W105 ($7.40), brokers said, up from last done fixtures a couple of weeks ago around W70 ($5.00). VLCC rates from West Africa to the U.S. were also rising as some charterers sought to combine stems while Suezmax rates rose. A fixture at W61.25 ($5.40) was reported up from the previous W52.5 ($4.60) benchmark. Middle East VLCC rates were expected to stabilize and possibly rise as a result of Iraqi exports also restarting from Mina al Bakr. A feared meltdown in Mideast VLCC rates had failed to materialize while strong Asian chartering for December underpinned the market over the last two weeks. But with most December cargoes gone there had been fears rates would Collapse if Iraq stayed shut. - (Reuters)
Maritime Reporter September 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

More German Shipowners Look to Gibdock for Repairs

Gibdock remarks it has continued to see its stock rise amongst the German shipowner community over the past year. Indeed the Gibraltar ship repair yard’s recent

Tankship Owners TORM Get Credit Facility Extension

Denmark-based TORM say that all lenders have supported the agreement to extend the existing Super Senior Working Capital Facility by six months until 31 March 2015

Iraqi Kurdistan Oil Shipments Reach 8.8m Barrels

Iraqi Kurdistan has shipped 8.8 million barrels of oil from the Turkish port of Ceyhan since May, Turkish Energy Minister Taner Yildiz said, as the autonomous region

Ports

NZ's Lyttelton Port Recommends Offer, to Pay Special Dividend

The board of New Zealand's  Lyttelton Port Co. Ltd recommended minority shareholders accept an offer of NZ$3.95 a share offer from the commercial arm of the Christchurch city council.

More German Shipowners Look to Gibdock for Repairs

Gibdock remarks it has continued to see its stock rise amongst the German shipowner community over the past year. Indeed the Gibraltar ship repair yard’s recent

No Sign of Ultra-Large Containership Mega Hubs: Analysis

Contrary to the views of some in the industry, Ultra Large Container Vessels are continuing to call at multiple North European ports per loop and are not concentrating on a mega-hub,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0766 sec (13 req/sec)